1) If a nondiscriminating pure monopolist decides to sell one more unit of output, the
marginal revenue associated with that unit will be:
A.equal to its price.
B.the price at which that unit is sold less the price reductions that apply to all other
units of output.
C.the price at which that unit is sold plus the price increases that apply to all other units
of output.
D.indeterminate unless marginal cost data are known.
2)
Refer to the graph above, which shows the supply and demand for British pounds. D1
and S1 represent the initial demand and supply curves. If there is a large increase in the
number of American tourists visiting Britain because of a major event like the Olympics
or the World Cup, then what should the British government do if it wants to fix the
exchange rate at its initial level?
A.Shift D1 to D2
B.Shift D1 to D3
C.Shift S1 to S2
D.Shift S1 to S3
3)
Refer to the given diagram, where Sd and Dd are the domestic supply and demand for a
product and Pc is the world price of that product. If this economy was entirely closed to
international trade, equilibrium price and quantity would be:
A.Pa and z.
B.Pa and x.
C.Pc and z.
D.Pc and v.
4) Depreciation of the dollar will:
A.decrease the prices of both U.S. imports and exports.
B.increase the prices of both U.S. imports and exports.
C.decrease the prices of U.S. imports but increase the prices to foreigners of U.S.
exports.
D.increase the prices of U.S. imports but decrease the prices to foreigners of U.S.
exports.
5) Which of the following occupations is projected to be the fastest growing in the U.S.
in terms of percentage increases?
A.Medical assistants.
B.Biomedical engineers.
C.Personal care aides.
D.Software engineers.
6) If a nation has a comparative advantage in the production of X, this means the
nation:
A.cannot benefit by producing and trading this product.
B.must give up less of other goods than other nations in producing a unit of X.
C.has a production possibilities curve identical to those of other nations.
D.is not subject to increasing opportunity costs.
7) The idea of efficiency wages is that:
A.the wages of each type of labor must be proportionate to their marginal products.
B.the wages of each type of labor must be equal to their marginal products.
C.firms might get greater work effort by paying above-equilibrium wage rates.
D.workers are more diligent when paid below-equilibrium wages.
8) If a particular bank regularly announces changes in its interest rate schedules before
its competitors, who then set rates very close to those announced by that bank, this
could be described as:
A.Markup pricing
B.Predatory pricing
C.Price leadership
D.Explicit price collusion
9) A leftward shift of a consumer’s budget line to a position parallel with the original
one could indicate that the:
A.Price of one product has decreased in relation to the other
B.Prices of both products have decreased in the same proportion
C.Consumer’s money income has increased and the prices of both products have also
increased but proportionately less
D.Consumer’s money income has increased but the prices of both products have
increased proportionately more
10) Interindustry competition refers to the fact that:
A.Oligopolistic producers establish a common price for their products
B.Products are identical in a purely competitive industry
C.Firms which sell a product at one stage of production buy materials and parts from
other firms at prior stages of production
D.In some markets the producers of a certain commodity might face competition from
products of other industries
11)
Common causes for a backflow in migration include the following, except:
A.Expected gains in the new country are exceeded by actual gains
B.Living costs in the new country are higher than expected
C.Costs of being away from family and friends are greater than expected
D.Anticipated jobs and promotions are not found in the new country